Propel Morning Briefing Mast HeadAccess Banner  
Propel Morning Briefing Mast Head Propel's LinkedIn LinkPaul's Twitter Link Paul's X Link

Krombacher Headline Banner
Morning Briefing for pub, restaurant and food wervice operators

Thu 4th Mar 2021 - Propel Thursday News Briefing

Story of the Day:

Wendy’s plans 20 company-owned UK sites, eyes five openings this year: Wendy’s, the third-largest quick service restaurant chain in the US, plans to open five sites in the UK this year, with a target of eventually operating about 20 company-owned branches in Britain. The company plans to enter the UK with company-owned and operated restaurants in the first half of 2021 and, in its second phase, will launch in priority areas with multi-unit franchisee operators. It has already secured sites in Reading and Oxford, and is believed to have a strong pipeline of locations in place in the UK, including some drive-thrus. The business has now said it plans to open ten sites in the UK next year, has secured multiple locations and is engaged with several potential franchisees. Wendy’s chief executive Todd Penegor said: “We continue to make great progress towards our plan to expand into Europe and remain on track to begin opening restaurants in the UK in the first half of 2021. We have built a top talent team on the ground, have multiple locations secured and are engaging with several potential franchise candidates to build out this market alongside us. International expansion remains critical to growing our Wendy's footprint. And we believe that we have the plans and the partners in place to make this happen. We'll get about five company restaurants open in the UK in 2021. We'll continue to build company units into 2022, and supplement that with the franchisees we're recruiting to grow that market out. And that's a couple of years of journey to really start to solidify a good beachhead in the UK to really prove out the model for the broader European business. The team is actively recruiting franchisees in other European markets.” Chief financial officer Gunther Plosch added: “At the end of the day, we want to get to about 20 company restaurants in the UK. But as Todd also said, it's a hybrid model.” In July last year, Wendy’s announced it would return to Britain, 20 years after it closed its UK outlets to focus on its North America base. The company opened restaurants in the UK in 1992 but pulled out seven years later due to high real estate and operating costs. Wendy’s has more than 6,700 outlets in 30 countries around the world. Last summer Propel revealed Wendy’s had started building its team ahead of a proposed UK launch. It appointed Michael Clarke, formerly of Pizza Hut Restaurants and Firezza, as its UK director of operations.

Industry News:

Sponsored message – help shape contextual in-store promotion that will boost dine-in revenue in 2022: As the country moves out of lockdown and more dine-in options become available to guests, a chance to optimise their experience through contextual digital menus and promotions is now available for fast food, coffee, or convenience chains through Store Performances’ Store Analysis Machine. A spokesman said: “Contextual promotion driven by weather, events and other data sources has been seen to be more welcoming, modern, current and of better quality, and can help you optimise your promotions and thus revenue across your estate. In addition, Store Performance is developing Store Analysis Machine artificial intelligence (SAM AI) that will be an ‘always learning’ solution that combines multiple data insights to produce optimal promotion in each store utilising your current investment in digital menus, kiosks and drive-thru.” Store Performance has won a Innovate UK smart grant to develop SAM AI and has gathered a team of academic, data and industry partners to deliver this project. To help shape this product, it is recruiting system owners and their franchisees’ marketing specialists to take part in one-hour discovery interviews and a one-hour focus group. To get involved click here. If you have information you would like to feature in a sponsored message, email paul.charity@propelinfo.com

Operators Nando’s, Bistrot Pierre and Azzurri discuss getting closer to their customers in Propel and Yumpingo webinar: Propel and Yumpingo, the guest experience management platform, will host a free webinar on Thursday (4 March) with leading operators exploring how they have used lockdown to get closer to their customers, and how they are “surfacing the voice of the guest” in their organisations to drive ever-improving standards and experience. The operators joining the discussion are Nick White, chief executive of Bistrot Pierre, Vikram Badhwar, global head of operations technology at Nando’s, and Joel Robinson, digital and technology director at Azzurri Group. They reveal the changes their companies have delivered in the past six to 12 months, the evolving multi-channel nature of their brands, and how technology is enabling them to get much closer to what their guests think, feel and say. Joined by Yumpingo chief executive and founder Gary Goodman, the discussion also explores how leading brands are harnessing net promotor scores as the leading metric in their businesses to drive their operations, teams and guest experience management, to deliver more happy guests and ultimately higher sales and profits. The webinar will be sent out at 9am on Thursday (4 March).
Yumpingo is a Propel BeatTheVirus campaign member

Nick Mackenzie – more important than ever government sticks to reopening timetable if full business rates holiday finishes at end of June: It is more important than ever the government sticks to the timetable to reopening if the full business rates holiday finishes at the end of June, Nick Mackenzie, chief executive of brewer and retailer Greene King has said. While he welcomed the support for the sector in the Budget, Mackenzie also warned the additional grants would “make little difference” if they are unable to be accessed due to State Aid Rules. He said: “While the business rates extension will help our tenants and smaller businesses, the £2m cap from the end of June, just nine days after planned full reopening, means larger businesses will be denied millions of pounds in vital relief at a critical time. This makes it more important than ever the government sticks to the timetable for reopening. The chancellor has placed the additional grants at the heart of his package of support for pubs, but it will make little difference if we are unable to access them due to State Aid Rules. We need government to clarify this urgently, and remove the cap to ensure all businesses can benefit.”

Sheehan – there is a wall of money out there looking to invest in pub sector: There is a “wall of money” looking to invest in the pub sector, Mark Sheehan, managing director at Coffer Corporate Leisure, has said. He said: “It has been a tough 12 months for most property sectors – especially the leisure sector, which has never faced a challenge of this magnitude before. Understandably, transaction volumes in the sector over this period have dropped significantly. Investors had typically adopted a ‘wait and see’ approach amidst frequently changing government restrictions. Despite this backdrop, we are already seeing expectations that leisure and hospitality will open again safely and without restrictions, and the huge pent-up demand will mean the recovery will be swift and sharp. We witnessed green shoots of investment activity towards the end of last year and the past two months have led to a flurry of transactions. In this period, we have advised on the transaction of more than £100m of leisure property. We expect the market to gain momentum as restrictions are eased, culminating in a very active summer. There are many investors seeking assets in the public house sector, and despite the aforementioned challenges many investors look to the longer term and fully expect good operators to recover quickly and pubs to remain good long-term assets as the fabric of society. There is a wall of money out there looking to invest.” Sheehan’s comment came after Coffer Corporate Leisure advised a private client on the investment sale of 202 Camden High Street, which trades as the Bucks Head. The property, which is let to Stonegate Pub Company on a long index-linked lease, was sold for £4.1m, reflecting a 4.1% net initial yield. 

Job of the day: COREcruitment is looking for an experienced strategic account manager for a restaurant partnership business. Based in Yorkshire, the position is paying up to £75,000. This is a key role for the business, focusing on strategy, growth and development of key accounts. The individual will manage their own team of executives and look to build and retain relationships with partners. Working alongside operations, logistics and marketing, the strategic account manager will own the P&L. The ideal candidate will have extensive experience in both strategy and partnerships as well as a strong background in account management and be very comfortable handling negotiations and contracts. This would suit individuals that have a collaborative approach to work and leadership and previous experience successfully leading and growing a team or department. Anyone interested can email Kate@corecruitment.com with their CV.
COREcruitment is a Propel BeatTheVirus campaign member

Company News:

YO! appoints Xenia Walters as new chief financial officer: YO!, the global multi-channel, multi brand Japanese and Asian food group, has appointed Xenia Walters as its new chief financial officer. Walters, who replaces Edward Knighton, who stepped down from YO! at the end of January, has also been appointed an executive director of the company’s board, effective from Monday (8 March). YO! said she brings with her more than 20 years’ extensive experience working in a variety of senior roles with international groups “gaining broad financial, business and international experience”. Most recently she held the role of group chief financial officer of SDL, the listed professional services provider, where she helped drive the successful transformation and merger with RWS Holdings, creating the world’s leading language service and technology group with a market capitalisation of circa £2.4bn. Prior to SDL, Walters held chief financial officer roles in a number of private equity-backed businesses including Frank Recruitment Group, Oxford International Education Group and INTO University Partnerships. Earlier in her career, she held senior roles at Regus, including UK chief financial officer and group financial controller. Richard Hodgson, chief executive of YO!, said: “Xenia has an impressive track record of helping businesses navigate growth, as well as managing teams and developing best practice processes in complex multinational organisations. These factors, together with her experience in driving transformational change, will make her an invaluable member of the team as we continue to execute on our diversification strategy.” Walters said: “I’m excited to be joining YO! at this moment in the group’s development – as it continues to reinforce its leading positions in the markets it serves, as well as grow through new opportunities.” Propel revealed in January that Knighton, who joined the business in 2017, was stepping down to pursue new opportunities. 

Barkby Group – pubs and coffee business poised for ‘significant’ growth: Premium gastro-pub operator Barkby Group has said its pubs and Workshop Coffee business are poised for “significant” growth and a return to profitability as the UK is set to emerge from lockdown. For the six months ended 31 December 2020, the company, which also operates in the commercial property and life sciences sectors, reported revenue was up to £7.9m from £7.6m last year, with a net loss of £2m. During the period the company said it made a number of operational improvements in its pub business, which it expected to lead to higher margins once lockdown restrictions are lifted. It said while pubs are currently not trading, a path out of lockdown “gives cause for optimism”. Barkby Group said while the pubs were materially impacted by covid-19 and national lockdown, they had traded well between July and October 2020, when lockdown in England was lifted. Like-for-like sales were down 3% between 1 July and 30 September 2020 while they fell 45% between 1 October and 31 December 2020 following the re-imposition of trading restrictions. In September, it acquired a nine-year lease for The Harcourt Arms in the village of Stanton Harcourt in Oxfordshire and is “actively looking for further opportunities to add to our pub portfolio”. The company added: “The group's short-term strategy remains to increase its portfolio to circa 12 pubs under a combination of leasehold and freehold acquisitions. We are currently assessing the acquisition of a further leasehold interest and we anticipate further acquisition opportunities will arise as a result of the covid-19 pandemic. At Workshop Coffee, wholesale revenues have been significantly impacted as independent coffee shops, hotels and other hospitality customers have been forced to close during the national lockdown periods. Wholesale revenues were down by 55% on the same period last year. However there has been a substantial increase in online sales, which increased 118% on the same period last year. As we come out of lockdown, our pubs and coffee business are poised for significant growth and a return to profitability.”

Mowgli confirms plan to open in Glasgow: Indian street food concept Mowgli has confirmed it will open a site in Glasgow, with a launch planned for spring 2022. Propel revealed last year the 11-strong Mowgli, which is backed by Foresight and led by Nisha Katona, had secured the ex-Handmade Burger Co site in the city’s St Vincent Street. On the new site, Katona said: “The Budget loosened much that has been calloused by the pandemic. I’m grateful to be able to grow and help economic resurrection by creating jobs ‘where the people are’. How fortunate for me that they are in Glasgow!” Last week, the company confirmed it had lined up an opening in Cheltenham for this summer. It has secured the ex-Babel site in the town’s Brewery Quarter. The company is also set to open in Edinburgh’s Hanover Street. At the start of November, the group, which is chaired by Karen Jones, secured a site in the McArthurGlen Cheshire Oaks Designer Outlet. 

JD Wetherspoon to invest £1.8m in Leeds pub redevelopment: JD Wetherspoon will spend £1.8m redeveloping The Stick or Twist pub in Leeds, with an opening date set for 6 July. The pub in Merrion Way first opened in 1997 and was demolished in 2018 by the landlord of the property in order to build a new unit with student accommodation above. Wetherspoon will begin renovating the ground floor on 5 April. The work will create 60 jobs and the pub will house 4,000 square foot of space and be 25% larger than the original site. It will add terraces to the front and side, which can be accessed via bi-folding doors. The Stick or Twist will have an open kitchen that will be twice the size of its predecessor. Wetherspoon chief executive John Hutson said: “We are delighted The Stick or Twist is set to open once again. The pub was open for 21 years and was extremely popular. We are confident existing as well as new customers will welcome the pub’s reopening and be impressed with its new look. Wetherspoon has always enjoyed great success in Leeds and this investment in the new pub highlights our commitment to the city.” 
 
The Blues Kitchen to open first regional site in May: The Columbo Group, led by Steve Ball and Riz Shaik, will launch its first regional site of The Blues Kitchen on 20 May, in Manchester. Columbo, which is also behind London venues XOYO and Jazz Cafe, already operates three The Blues Kitchen sites in the capital. The Blues Kitchen will offer “a flavour of the Deep South” to Manchester and host live music with a seven-nights-a-week programme. The two-storey venue in Quay Street will comprise a restaurant and bar on the ground floor and a concert hall on the first floor. The concert hall will open for seated entertainment until 21 June when standing will be permitted for gigs and club nights. The food and drink offer includes Southern barbecue dishes and bourbon. Ball said: “We’ve been looking for the perfect site in Manchester for years and have finally found it. We’ve taken a great deal of pleasure in restoring the building over the past year and we’ve managed to get hold of some incredible vintage features from the US so it’s really going to be quite something.” The 35,000 square foot site is owned by Endless Developments and was previously occupied by Australian bar brand Walkabout but the venue closed at the end of 2015.

Deli Madeleine’s Kitchen doubles up: Hampshire-based deli brand Madeleine’s Kitchen is set to open a second site just across the county border, in Midhurst, West Sussex. The company’s original site has been operating for five years in Petersfield. The new site is a grade II-listed terraced building and will offer deli and takeaway food plus kitchen items, artwork, china and flowers and is set to open in late March. Its garden has views over country property Cowdray House. Among its dishes are Greek spanakopita, Moroccan lamb pies, Singapore curry puffs, quiches, frittatas and takeaway sandwiches. Locally roasted coffee from Mark Goulding of Winchester Coffee Roasters will be available to purchase as well as a cheese selection. Founders Kathryn Rodbert and Antonia Troth said: “What started as a discussion outside of the school gates has turned into a popular and successful deli and kitchen shop and we are excited to be opening our second shop in Midhurst.” The site letting was arranged through property agent Savills.

Virgin Experience Days to acquire Cloud 9 Living’s US business: Experiential gift provider Virgin Experience Days is set to acquire Cloud 9 Living’s US operations. Both brands offer domestic gift experiences to customers, with Virgin Experience Days using the acquisition as a springboard for further growth into a US gift experience market estimated at $1bn. Cloud 9 Living will be rebranded as Virgin Experience Gifts in the US. Plans for the business include expansion into certain US geographies, broadening the product range and introducing experiences “that have successfully differentiated the proposition in the UK”. Virgin Experience Days and Cloud 9 Living offer a choice of more than 4,000 experiences and, collectively, they account for almost 1.4 million purchases each year. In 2019, Virgin Experience Days recorded a 92% annual increase in UK Black Friday sales, while a 2018 Eventbrite survey revealed 63% of US adults would prefer to receive an experience gift over a material gift. Virgin Experience Days chief executive Richard Hurd-Wood said: “The Virgin brand has strong recognition already in the US and the acquisition of Cloud 9 Living bolsters our product proposition around extraordinary experiences for people to enjoy together.” Cloud 9 Living added: “The opportunity in the US experience gift market is enormous and largely untapped.”
 
Five Points Brewing Company reveals plans for new combined brewery and open-air taproom: London-based Five Points Brewing Company has revealed plans for a new combined brewery and open-air taproom. The move allows the company to merge its separate production and warehousing sites into a new flagship headquarters in Mare Street, Hackney. The new taproom will host visitor tours and beer tastings, and will have a large outdoor area for open-air hospitality. The company aims to complete phase one of the project in time for the April reopening of outdoor hospitality. The business will also be raising fresh investment and allowing customers to invest, with perks to include bar tabs in the new taproom. Co-founder and managing director Ed Mason said: “The past 12 months have been incredibly challenging for independent breweries, as they have for all small businesses. So it is exciting to be able to look to the future and place the company on a secure footing with a new brewery and taproom.”
 
New sports bar to open at Ricoh Arena ahead of Commonwealth Games: A new sports bar is set to open at the Ricoh Arena in Coventry, which will be a venue hosting the Commonwealth Games in 2022. The bar will cater for up to 160 covers at a time and will have a number of widescreen TVs as well as interactive games, including shuffleboard and table football. The venue is currently used by Wasps rugby union team and its club shop will be relocated to make way for the 400 square metre bar, which will be open to the general public daily, and will create about 25 jobs. Work has already begun and the sports bar is set to open this spring, reports The Business Desk. Ricoh Arena’s catering partner, Delaware North, is funding a significant portion of the seven-figure investment in the bar, along with investment from the Coventry and Warwickshire Local Enterprise Partnership, which has been made via an allocation of funding as part of the government’s Getting Building Fund, and from the government’s Local Growth Fund and Growing Places Fund. 
 
Two Midlands hotel and wedding venues go into administration: Two hotels in the Midlands that host weddings and conferences have been closed after administrators were appointed for the venues’ parent company Sundial Group and Woodside Conference Centre. Highgate House Hotel in Creaton, Northamptonshire, and Woodside Conference Centre in Kenilworth, Warwickshire, have both been shut and are “unlikely to reopen”. A statement from administrator Grant Thornton said: “The businesses have been heavily impacted by the covid-19 pandemic, with the hotels being closed during the current lockdown period. The administrators recognise the impact of the administrations on employees, clients and suppliers to the companies, and are working to resolve outstanding matters in line with their statutory obligations as swiftly as is practicable. The administrators are continuing to work with the directors to assess the options available to realise the assets but unfortunately, due to the current economic climate, the hotels are unlikely to reopen during the period of the administration.”

Lucky Saint strengthens team: Alcohol-free beer brand Lucky Saint, founded by Luke Boase, has strengthened its team with the signings of former BrewDog and Camden Town Brewery charges. The move comes shortly after the successful fundraise of £3.5m by the business. John Logue has joined Lucky Saint as head of marketing. He was part of the team that launched Rekorderlig’s alcohol-free cider globally, worked in BrewDog’s alcohol-free portfolio and also at Atom brands. Aaron Duffett has taken the role of head of on-trade after spending four years leading London-based Camden Town Brewery’s on and off-trade sales teams. Boase said: “Following rapid growth in 2020, driven by success in off-trade and e-commerce, we are in the exciting position to be able to invest further into sales and marketing. John and Aaron both bring with them a huge amount of experience in growing brands and I can’t wait to see them bring Lucky Saint to an ever-growing audience.”
 
Compass Scotland vows to create 100 apprenticeship opportunities in 2021, backed by Tom Kitchin: Compass Scotland, which was launched by contract caterer Compass Group UK & Ireland in November last year, will create 100 new Modern Apprenticeship opportunities this year. The launch of its Modern Apprenticeship Programme creates a career progression roadmap for an individual to work towards, from a Foundation Apprenticeship, Modern Apprenticeship or a Graduate Apprenticeship. To deliver the programme, Compass Scotland is working with Scottish clients, businesses, hospitality industry stakeholders, colleges and universities – all with input from Compass Scotland’s culinary ambassador, Michelin-starred chef Tom Kitchin. Compass Scotland managing director David Hay said: “Scotland has an excellent reputation for its hospitality and its world-renowned food and drink. As the industry recovers from the impact of the pandemic, we need to look to the future and ensure the next generation of talent is nurtured and retained.” Kitchin added: “I am excited to be working with Compass on its apprenticeship scheme, which should help to bring through the next generation of hospitality talent in the UK.”
 
Tian Tian Market opens second site in Aldgate: Asian food grocery store Tian Tian Market has opened its second site offering food from China, Japan, Korea, Thailand and Vietnam. The new site is located in Piazza Walk, Aldgate, and has large meat and seafood sections, bubble teas, noodles and Little Moons mocha ice cream. It also houses a sake bar, which can only be used for collection only under lockdown restrictions, and a range of patisserie goods. Customers can collect pre-ordered goods from companies such as Wa Café, Kova Patisserie, Mille Patisserie and Tsujiri UK Matcha House, and can also go in store for grocery shopping. Tian Tian opened its first site in South Quay, London, in 2016.

Chick ‘n’ Sours launches meal kits: Chick ‘n’ Sours, the Carl Clarke and David Wolanski-founded concept, has launched meal kits. They feature “everything fried chicken lovers need to recreate the Chick ‘n’ Sours experience at home”, including signature dishes, cocktails, and a 24-hour playlist of tunes. The kit features two chicken sandwiches, four kung pao wings, four hot wings, four tenders, house-made dip, watermelon salad, green ‘slaw and cucumber. The “All In + Sours” kit also includes four signature sours, pre-bottled. The kits are available for nationwide delivery. Cut off for orders each week is Sunday evening, with deliveries taking place the following Friday. Clarke and Wolanski also operate fried chicken concept Chik’n.
 
BrewDog launches online Beer School: Scottish brewer and retailer BrewDog has launched Beer School, which is designed to give beer fans the chance to learn more about what they drink and how to brew beer. The online course promises to make students beer experts and learn about the ingredients used in the beer processes and pairing matches with food. Co-founder James Watt said: “Thinks less maths and English, and think more the science of doing and the history of hops.” Beer School will send out “some tasters” for students so they can “start with a taste test and see what piques your interest – that, quite literally, is your homework”. Experts on board to help teach at Beer School include BrewDog co-founders Martin Dickie and Watt, malting and brewing scientist Dr Charlie Bamforth, Crown & Hops Brewery founders Teo Hunter and Beny Ashburn, vice-president of Alt Growth at BrewDog Sarah Warman, Cloudwater Brewery founder Paul Jones, chief of brewing operations at Urban Artifact Bret Kollman Baker and Good Beer Hunting editor and reporter Kate Bernot. 
 
Wells & Co offers virtual tours of new home and tutored beer tasting: Bedford-based brewer and retailer Wells & Co is offering virtual tours of his new home, Brewpoint. Alongside a live virtual brewery tour delivered via Zoom, customers can enjoy a tutored beer tasting of half a dozen new beers from the range, delivered by the brewers who crafted them. Tom Foddy, head of sales and marketing, said: “Opening a brewery during a pandemic is tough, but necessity is the mother of invention, and we couldn’t be happier with the virtual tour and tasting format we’ve created to bridge the gap until we’re able to invite guests to visit Brewpoint in person.” Customers can take part by buying a specific taster pack of six beers, complete with a branded glass, from Brewpoint’s online shop, then sign up for a tour date.
 
Alcohol-free drink producer Sea Arch Drinks secures investment to aid growth: Devon-based Sea Arch Drinks has secured an investment to help grow the alcohol-free producer further in the UK and overseas. Established in 2018, Sea Arch Drinks makes Sea Arch Coastal Juniper blend drink, which has met with the approval of Patrick Doyle, chief executive of duty free business International Diplomatic Supplies. Doyle, whose company is based in Dubai, contacted Sea Arch Drinks owners Geoff and Sarah Yates after trying the drink. Doyle said: “It is no secret the no and low-alcohol sector is growing worldwide. As a non-drinker, I have enjoyed some great alcohol-free beer but I’d tried several non-alcoholic spirits and was generally disappointed. However, when I tasted my first glass of Sea Arch and tonic, I was really impressed; in my opinion it is the best non-alcoholic botanical spirit available. I asked Geoff and Sarah for a meeting to discuss an investment in the brand and I’m pleased to say we have been able to reach an agreement.” Doyle, who has 30 years’ experience as a company director, including 24 years running International Diplomatic Supplies, will help to fund new brand extensions and innovations for Sea Arch Drinks.

Return to Archive Click Here to Return to the Archive Listing
 
Punch Taverns Link
Return to Archive Click Here to Return to the Archive Listing
Propel Premium
 
Pepper Banner
 
Butcombe Banner
 
Contract Furniture Group Banner
 
UCC Coffee Banner
 
Heinz Banner
 
Alcumus Banner
 
St Austell Brewery Banner
 
Sideways Banner
 
Small Beer Banner
 
Kronenberg Banner
 
Adnams Banner
 
Meaningful Vision Banner
 
Mccain Banner
 
Pringles Banner
 
Propel Banner
 
Christie & Co Banner
 
Kurve Banner
 
CACI Banner
 
Airship – Toggle Banner
 
Wireless Social Banner
 
Payments Managed Banner
 
Deliverect Banner
 
Zonal Banner
 
HGEM Banner
 
Venners Banner
 
Zonal Banner
 
Access Banner
 
Propel Banner
 
Pepper Banner